Risks to the long-term effectiveness of new biodiversity net gain scheme - National Audit Office
- The Department for Environment, Food and Rural Affairs (Defra) launched a novel and complex biodiversity scheme without having all elements in place to ensure its long-term success.
- Defra needs to manage a range of risks including whether a new biodiversity market emerges, and whether compliance and enforcement by local authorities will be effective.
- Defra is still developing a way to spend money it receives from developers on biodiversity; and also how to judge whether its policy is working.
There are risks to the long-term effectiveness of a new policy, launched by the government in February, to make sure developers in England protect or improve biodiversity on land they are developing, according to a new National Audit Office (NAO) report.
The independent public spending watchdog’s latest report assessed whether Defra and Natural England have made good and effective progress implementing statutory biodiversity net gain.
Statutory biodiversity net gain (BNG) was legislated for as part of Defra’s 2021 Environment Act. The new rules – which are unique to England – require development to have a measurably positive impact (‘net gain’) on biodiversity compared to what was there before. This is the first time a government has introduced statutory BNG as a national legal requirement.
Developers must improve the habitats they harm by a net 10%, ideally on-site. When on-site gains are not enough to meet the 10% requirement, off-site gains can be created by the developer elsewhere or purchased through a new private market for biodiversity units.
BNG is being implemented in three stages, with major developments in scope from February 2024; small developments from April 2024; and nationally significant developments from November 20253.
Stakeholders support the scheme, but had concerns about its implementation prior to launch. These concerns included uncertainty about the launch and preparation costs.